Dale Wilesack looks at cannabis seedlings at the new Aurora Cannabis facility in Montreal, November 24, 2017.
, The Canadian Press/Ryan Remiorz

Aurora Cannabis and Aphria Inc. say they were among the three companies selected by the German government to cultivate and distribute medical pot in the European country.

Both companies say the decision by Germany's Federal Institute for Drugs and Medical Devices is provisional and subject to a mandatory 10-day waiting period, which allows unsuccessful bidders to submit a challenge before the final contract is signed.

If finalized, the cannabis produced by both Aurora and Aphria will supply the German medical cannabis market, which is the largest in Europe according to a recent report by Brightfield Group.

Both cannabis companies say the provisional decision awarded them each the maximum number of five of the 13 available lots in the tender, over a period of four years. Berlin-based Denecan received the remainder, according to reports.

Jefferies analyst Owen Bennett said in a note that the decision is positive for Aurora, as it helps to validate the quality of its medical operations and puts the Edmonton-based company in good stead when attempting to enter other markets.

Brightfield Group estimates that Germany's medical cannabis market was worth US$73 million in 2018 and is forecast to grow to US$2.7 billion in 2023.